Pacifica’s first rule of investing is “no permanent loss of capital,” and our investment approach is designed to avoid that occurrence over the long term. The key to our success is finding outstanding businesses that can be bought at attractive prices and holding them over the long term – and the longer the better. With tax rates on the rise, our “buy and hold” philosophy also creates tax efficiencies for most investors.
Pacifica often holds substantial cash positions for varying periods of time while we await opportunities to buy interest in great companies when the market makes them available at discounted prices. Until compelling investment opportunities present themselves, your money will remain in interest or dividend-bearing instruments.
Pacifica Capital Investments focuses on finding quality businesses that we understand well.
We define these as having:
- favorable long term prospects,
- sustainable competitive advantages, and
- capable and shareholder-oriented management teams.
PCI’s investments are most often in companies having: strong brands, leading market positions, honest and capable management, high returns on invested capital, and sustainable competitive advantages.
We concentrate on select industries and limit our holdings to just those top companies when we can buy them at attractive prices. Pacifica seeks to minimize risk by owning fewer businesses we know more about. We see no benefit to extending our holdings beyond that first tier and into companies with futures that are more difficult to evaluate.
We strive to invest in just the best businesses when the market makes them available at prices below our estimate of their intrinsic value. Since that condition doesn’t regularly occur, the PCI approach often leads to opportunistic acquisitions of quality companies when there is a solvable concern within a company, trouble in its sector, or fear is prevalent in the broader market.
The key to PCI’s success is finding outstanding businesses that can be bought at attractive prices and holding them over long periods of time (the longer the better). We wait patiently until the opportunity emerges and buy only when we have confidence in the long-term performance of the business. If those criteria aren’t met, our philosophy dictates that we hold cash and await value.
The key to our long-term success is that we have found and invested in outstanding businesses bought at attractive prices — and have typically held them for long periods of time. Our goal is to beat the market over time — and not worry about beating it every time. PCI’s long term results, illustrated in our Performance Record, are a testament to this rewarding strategy.